ABACUS GROUP — AGM Information 2007

Nov 13, 2007

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ASX ANNOUNCEMENT

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Abacus Property Group AGM

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The following presentation will be delivered to the Abacus Property Group Annual General Meeting to be held this morning.

Ellis Varejes Company Secretary 612 9253 8600

14 November 2007

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Abacus Property Group

Annual General Meeting 2007

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Investor Update

Overview

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1. Introduction to Abacus Property Group

2. Business Model and Strategy

3. Principal Investment

4. Funds Management

5. Other Businesses

6. Business Outlook

1. Introduction to Abacus Property Group

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Abacus is a diversified property business, comprising:

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• principal property investments

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funds management joint venture developments property finance solutions

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The business commenced in 1996, and has:

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Grown its ASX market capitalisation from $290m to $1,200m

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Grown assets under management/control from $450m to nearly $3,000m

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Been included in the S&P/ASX 300 Index, with good prospects for inclusion in the S&P/ASX 200 index

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1. Introduction - Overview

History of delivering consistent and reliable returns for our investors:

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21.3% IRR since IPO in November 02 FY07 total return was 34% ABP Security Price History

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$2.20				20
$2.00
$1.80				15
$1.00 $1.20 $1.40 $1.60				0 5 10

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	Group Overview		ASX Code:ABP
	Security Type		Stapled Security
	Security Price (28 Sept 07)		$1.92
	Securities on Issue		634.5m
	Market Capitalisation		$1,218m
	Index Inclusion		S&P/ASX 300
	Institutional/Retail Mix		55%/45%
	Average Daily Turnover		$2.3m
	Current DPS (quarterly)		3.25cps
	Current Yield (annualised)		6.8%

1. Introduction – Strong Track Record

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Earnings per security
15 14.4
14.5
14
13.5 12.8 12.9
13 12.4
12.5
12
11.5
11
10.5
10
9.5
9
FY04 FY05 FY06 FY07
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Distribution per security

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15
14.5
14
13.5
13 12.5
12.5
11.8
12 11.4
11.5 11.0
11
10.5
10
9.5
9
FY04 FY05 FY06 FY07
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NTA per security Assets under management
2500
1.4
1.31
1.3 2000
1.22
925
1.2 1500
1.09 366
1.1
1000
1.00
356
1 500 259 1034 1157
594
0.9 416
0
0.8 FY04 FY05 FY06 FY07
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1. Introduction – 2007 Record Profit

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Strong year, driven by:	Profit and Loss Summary	FY07 $M	FY06 $M	Change
High portfolio occupancy
Full year’s contribution	Principal Investment/Property EBIT	67.6	34.5
from ADIF portfolio	Funds Management EBIT	29.6	16.2
Launch of Abacus	Property Finance EBIT	12.3	15.3
Hospitality Fund	Projects and investments EBIT	0.6	3.0
Launch of Miller St Trust	Unrealised gains on investments	34.7	40.5
Did not include any	Other Income	2.0	0.9
substantive realisations	Group EBIT	146.8	110.4	+ 33%
of joint venture projects	Finance Costs	(21.9)	(7.8)
$900m of property	Tax	(4.5)	(0.8)
transacted	Minority Interests	(1.6)	(0.6)
	NPAT	118.8	101.2	+ 17%
6% DPS growth	Normalised NPAT Plus share based payments Less swap MTM Less unrealised gains on investments	79.8 2.9 (7.2) (34.7)	53.6 0 (7.1) (40.5)	+ 49%

1. Introduction – Strong Balance Sheet

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Strong balance sheet	Balance sheet as at 30 June	2007 $m	2006 $m	Change
Significant property portfolio
Low gearing
$148m retained earnings	Property Portfolio	834.5	774.6	+8%
Post balance date, $100m	Funds Management	133.2	71.5	+86%
placement completed:	Property Finance	120.5	137.9	-13%
NTA now $1.37	Projects and Investments	70.2	90.5	-12%
$300m property settled and/or
acquired, $300m additional capacity	Cash, Receivables and Other Assets	111.9	88.8	+26%
Gearing remains at 29%
	Total Assets	1,270.3	1,163.3	+9%
Only 50% of portfolio was
revalued in FY07	Interest Bearing Liabilities	394.2	434.5	-9%
Current debt structure:	Other Liabilities	72.8	55.7	+31%
71% of Group debt is fixed weighted avge swap life is 5yrs weighted avge rate is 7.13% renegotiating margins	Gearing Net Tangible Assets (NTA) Net Assets	29.5% 1.31 803.3	35.6% 1.22 673.1	-6% +7% +19%

2. Business model and strategy

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We are a principal investor in core-plus assets

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We extract value from our assets over time and then crystalise gains through sale or syndication

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Sale/syndication proceeds are reinvested in the replenishment of principal investment pipeline or the growth of our funds management business

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We continue to grow our funds management business by offering our clients:

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open-ended, core income funds; and

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special opportunity, value add investment funds.

3. Principal Investment - Philosophy

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Our focus is core-plus assets

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Attractive passing yield

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Opportunity for capital growth through active management Targeting equity IRRs in excess of 15% Achieved 30%+ IRR on assets sold in FY07

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We only acquire assets, whether as principal or as fund manager, that offer attractive real estate fundamentals

3. Principal Investment – Acquisition Criteria

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Purchasing Below Replacement Cost

Asset	Purchase Price $M	Replace’t Cost $M
Santos House	101	180
Carlton Hotel, Auckland	NZ96	NZ180
Rydges TradeWinds Hotel, Cairns	35	90

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3. Principal Investment – Acquisition Criteria

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		Low Purchase Rate PSQM	Low Purchase Rate PSQM	Low Purchase Rate PSQM	Low Purchase Rate PSQM	Low Purchase Rate PSQM	Low Purchase Rate PSQM
			Asset				Purchase Price Capital Rate psqm
			Santos House				$3220
			Miller St – Commercial Space				$2540
			Rydges Esplanade				$90,000 per room
			Villawood				$650
			Rydalmere				$900
											50 Miller St rincess Highway, Noble park

3. Principal Investment – Acquisition Criteria

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Large Land Holdings

Large Land Holdings	Large Land Holdings	Large Land Holdings	Large Land Holdings	Large Land Holdings
Land Size Asset
	Asset		Land Size
Novotel Twin Waters Resort		60ha
Chateau on the Park		2.5ha
Virginia Park Industrial Estate		12.2ha
Aspley Village		1.9ha
Pike St, Rydalmere		3.8ha
Epping Office Park		1.3ha
CSIRO		4.0ha

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Aspley Village

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3. Principal Investment – Acquisition Criteria

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	3. Principal Investment – Acquisition Criteria	3. Principal Investment – Acquisition Criteria	3. Principal Investment – Acquisition Criteria	3. Principal Investment – Acquisition Criteria
	Tenancy Repositioning Opportunities
		Asset		Key Tenancy Issue
		Santos House		Santos renewal risk over 50% of the asset, 3 years from purchase
		Miller St		Optus were to vacate 3 years from date of acquisition
		Moorabbin Homemaker Centre		Potential Spotlight vacancy
		Ashfield Mall		Replacing Target with Woolworths, refurbishing and renewing Coles
		Rydges Esplanade Hotel		NOP was $1.5m at purchase in late 2004, and now is $3m plus
				Moorabbin Homemaker Centre

3. Principal Investment – Acquisition Criteria

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Development Potential

Asset

Development Potential

	Seeking to replace Liverpool Rd shops with new entrance to mall,
Ashfield Mall	creating 2700sqm additional NLA, plus potential residential
		and serviced apartments
	Acquired mall with 6300sqm NLA (FSR 1:1), but FSR of 4:1
Liverpool Plaza	permissible. Acquired two adjoining properties with 5600sqm
		NLA potential. Plus residential apartment opportunity.
	Acquired 2ha site with 3700sqm NLA, and have since obtained
Aspley Village Virginia Park	approval to build an 11,000sqm retail centre, anchored by a 3200sqm Coles supermarket. 12.2ha industrial site in Bentleigh East, VIC. Currently 56,000 sqn NLA, with potential to add further NLA

3. Principal Investment – Acquisition Criteria

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Sum of Parts Exceeds the Whole

Asset Components 109 Pitt St Office, retail and car park 50 Miller St Office, retail and car park Lennons Plaza Hotel, office and retail Case Study – 109 Pitt St $M Strata Value of Commercial Space (ongoing) +/-70 Proceeds from sale of car park 20

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Proceeds from sale of retail 17
Gross Proceeds 107
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3. Principal Investment – Portfolio Overview

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Portfolio Overview	Aug 07
44 Number of properties
$834M Total asset value
302,000 NLA (sqm)
7.4%1 Weighted Avge Cap Rate
93%2 Occupancy
3.8yrs Weighted Avge Lease Expiry

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Geographic Diversification
ACT WA
3% 2%
SA
11%
VIC NSW
16% 49%
QLD
19%
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1. Excludes development properties

2. Excludes recent leasing at Westpac House

Sector Diversification Other 8% Indust'l Office 14% 30%

3. Principal Investment:

50 Miller St Case Study

Purchased in December 2004 on strong fundamentals

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• 11% passing yield, but 100% vacancy October 2007

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• Acquisition rate psqm of NLA was $3,423, but strata value for car parking and retail space reduced effective cost of office space to $2,540 psqm

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Property strategy at acquisition

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• strata subdivide and sell down on vacant possession; or

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• take advantage of the property’s location, low rate psqm for office space and large floor plates to release the vacant space

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Outcome

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100% of the office space and car park was let to NAB on a new 10 year lease

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4. Funds Management - Overview

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11 year track record in property funds management

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An integral component of the Abacus business model, offering a diverse fee stream

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Strong franchise as an innovative property funds manager amongst network of 1,500 financial planners and 12,000+ investors

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Current platform comprises $900m of FUM across core income funds and special opportunity funds

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Anticipate continued growth of funds management platform at 30%

4. Funds Management - $900m Platform

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	300 Abacus Hospitality Fund GAUM ($M) Core Funds	Fund Overview
		Targeting hotel assets that offer attractive real estate fundamentals, partnering with specialist managers
	213 Abacus Storage Fund	One of the largest owner-operators of self-storage assets in Australasia, 31 properties, strong operating performance
	190 Diversified Income Fund II	Small properties fund, 19 properties, sector diversification
	GAUM ($M) Special Opportunity Funds AUM ($M) Core Funds 40 Wodonga Land & Mortgage	Fund Overview Fund Overview Master planned community in Wodonga Victoria. Development consents proceeding.
	39 Retirement Living	Development fund with two approved sites

4. Funds Management -Abacus Hospitality Fund

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A $300m fund with 7 assets

Focus on core plus real estate investments

Multi-manager (Accor, Rydges, Swissotel)

Attractive market dynamics in Australasia, driven by favourable supply/demand balance

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Aggregating assets ahead of potential IPO

- 4. Funds Management Abacus Storage Fund

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Strategic position as one of 3 largest self storage businesses in Australasia

Initial portfolio is performing extremely well at the store level - 68% EBITDA growth last year

Enhanced operating performance and continued cap rate compression has driven a $21m (12%) revaluation of the portfolio

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First fund is closed, and we’re acquiring assets for a potential second fund

4. Funds Management – ADIF II

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A hybrid property fund comprising a diversified portfolio of small properties and property securities Abacus has been an active participant in the small properties sector for many years, with a strong track record of success

This fund will become the cornerstone fund of the group, offering a diversified property exposure and full liquidity.

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Initial retail fund has been launched, and we are now working on a wholesale entry point

5. Other Businesses

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5.1 Abacus Finance Solutions

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Abacus provides finance solutions across the development spectrum Loans are secured against the particular project and where appropriate, with collateral security from the developer Earnings comprise interest income and upfront, monitoring and exit/performance fees The finance solutions business provides transaction flow to the group, and potentially end product for other parts of our business

Portfolio Overview	Aug 07
$120m Current Loan Book
20 No of loans
11.8% Avge Interest rate (excl fees)
60% Third party projects
40% Abacus related projects

5. Other Businesses

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5.2 Projects and Investments – partnering for success

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We combine the capital and property expertise of Abacus with the regional or	Project	Description	Sector		Gross Realisation
sector specific expertise of our partners
	Pakenham	Land sub-division	Residential		$100m
Structured transactions that minimise balance
sheet exposure to development risk, often with preferred equity return	Dandenong South	Industrial Subdivision - 36 Hectares	Industrial		$50m
Current projects have gross realisations of		Shopping Centre
c$750M.	Pakenham	- 4200m2 Supermarket - 8,000 m2 DDS	Retail & Bulky Goods		$100m
JVs are an important source of transaction		- 40 Specialty Shops
opportunities for the group - provides product for principal investment activities, funds management and our finance solutions	Eastern Suburbs, Melbourne	Shopping Centre - Supermarket -20 specialties	Retail & Commercial		$70m
business		-Commercial

6. Business Outlook

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Principal Property Investments

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Large portfolio of assets on balance sheet provides:

• Pipeline of profits as we unlock the embedded value in our portfolio

• Stock for continued growth of funds management business

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The proceeds of dispositions will be recycled into the replenishment and growth of the principal portfolio

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Funds Management

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30% annual growth in FUM to be maintained

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Underpinned by expansion of core income funds and release of new funds

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The maturation of a number of our smaller funds this year will generate attractive

6. Business Outlook

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Projects & Investments

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A number of projects will crystalise in the next 12-24 months

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Expansion of partnership relationships will provide pipeline replenishment and growth of this business

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Finance Solutions

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We will pursue new financing opportunities where the security, reward for risk and collateral opportunities for the group are appropriate

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Corporate

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Inclusion in S&P/ASX 200 Index remains a key focus

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Pursuing opportunities to reduce overall cost of debt

Disclaimer

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The contents of this presentation are general only. It does not purport to contain all the information that an investor may require to evaluate an investment in the Abacus Property Group or any funds managed by Abacus Funds Management Limited. Before a person makes an investment decision on the basis of this information, they should determine for themselves or obtain professional advice as to whether any investment is appropriate for their particular needs, investment objectives and financial situation.

None of Abacus Property Group, its directors, employees or advisers make any representation or warranty as to the accuracy, reliability or completeness of the information contained in this presentation.

Any forecasts or other forward looking statements contained in this presentation are based on assumptions concerning future events and market conditions. Actual results may vary from forecasts and any variations may be materially positive or negative.

Statements made in this presentation are made as of the date of the presentation unless otherwise stated.